Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: VAT RATES :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: VAT Audit :: ACCOUNTING STANDARD :: form 3cd :: articles on VAT and GST in India :: TDS :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: due date for vat payment
 
 
News Headlines »
 Income Tax Department expands list of deposits, transactions under scrutiny
  Income-tax Act, 1961 read with Rule 114E of Income-tax Rules, 1962
 Master Directions on Access Criteria for Payment Systems
 RBI-Scheduled Bank's Statement of Position in India as on Friday, January 06, 2017 (Revised)
 3 Big Mistakes To Avoid This Tax Season
 The Top 5 Tax Stories Of 2017
 Are multiple service tax rates in the offing?
 All you need to know about claiming tax break on HRA
 How much income tax you should pay on investments in gold?
  Best ways to save tax in 2017
 8 unknown stocks that could yield huge returns

Money launderers may have to prove innocence
February, 19th 2007

Tax evaders should now get ready to face the music. The government is considering bringing in stringent provisions to curb tax evasion through the laundering route. The new tightened provisions could be unveiled in the new simplified income-tax law to be introduced in the Budget session of Parliament.

At present, when a money launderer is caught, the onus of evidence is on the income-tax department. The government now wants to shift the onus of evidence on the guilty and bring in special rules of evidence. The provisions would be modelled on the lines of the ones practiced internationally. The government is also looking at tweaking prosecution procedures, a source said.

A popular modus operandi to evade taxes is hawala, under which evaders open a large number of bank accounts or float bogus companies to circulate funds that may be coming from outside the country or to convert black money into white. Since the income-tax department is working on a new law, Direct Tax Code, there is a strong view that certain existing provisions with regard to evidence and prosecution should be tightened to give the law more teeth.

There is no specific provision in the existing law defining fraudulent transactions. In fact, India, which is joining the Financial Action Task Force (FATF) on money laundering as an observer may have to bring in changes in key laws to become compliant. The provisions would be tweaked in a manner that a genuine assessee does not get impacted and only wilful defaulters are caught and effectively dealt with.

Today, any unaccounted for money or expenditure can be added to the total income for which there are specific sections under the Income-Tax Act such as sections 68, 69, 69A and 69B. Specifically, if an assessing officer discovers cash credits, unexplained investments, money, expenditure, jewellery or other assets for which no satisfactory explanation has been provided by the tax payer, then all these can be added to the income and 100-330 times penalty can be imposed. In specific cases, prosecution can also be launched. However, prosecution is rare and, if launched, time consuming.

There are sufficient powers with the income-tax department within the current provisions to tax the unexplained money, investments and expenditures in case satisfactory explanation is not offered by a tax payer, KPMG director Vikas Vasal said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Achievements

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions